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7/28/2019 SF Business Times - Millennium Tower in San Francisco is a $750M Sellout
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SanFranciscoBusinessTimes April5,2013,Page1MillenniumTowerinSanFranciscois
a$750M
sellout
BignamebuyershelpcondohighrisesmashWestCoastrecordJ.K.Dineen,Reporter SanFranciscoBusinessTimes
Fiveyearsand$750millionlater,theWestCoastsmostluxuriouscondoprojectissoldout.MillenniumTower,aglassyslateblue60storyhighriseat301MissionSt.,closedthelastofits
419units,thecompanysaid.Despitesellingthroughtheworsteconomiccollapsesincethe
GreatDepression,thetowergenerated$750millioninsales,a25percentreturnoncostforthe
$600million
development.
The
units
averaged
$1.8
million,
with
penthouses
selling
for
as
much
as$9.8million,or$1,970asquarefootfora5,000squarefootpad.Thecondotowerwasthetallestandmostexpensiveresidentialhighriseconstructedonthe
WestCoast.FamousresidentsincludeTomPerkinsofKleinerPerkinsCaufield&Byers,football
executiveCarmenPolicyandHallofFamefootballiconJoeMontana.Thereweresomeprettydifficult,unsettlingtimesin2009,butwestayedthecourse,said
RichardBaumert,apartnerwithdeveloperMillenniumPartners.Wesawitthroughandinthe
endourplanandvisionfortheprojectwerevalidated.SanFranciscoscondomarketwasstillinoverdrivein2008whenMillenniumPartnersopened
itssalesofficeandbeganpresellingunits.ByApril23of2009,whenthebuildingopenedits
doorsandthefirstsalesclosed,theeconomywasintatters.Whileotherdevelopersracedtocut
pricesandunloadinventory,Millenniumimplementedaonetime15percentreductionthat
wasretroactivetobuyersalreadyincontract.Thedevelopermadethedecisiontokeepthe
pricecuts,evenasthemarketbouncedbackin2012and2013.Towardtheendtheysoldoutataveryfastpace,saidGreggLynn,aluxurybrokeratSothebys
InternationalRealty.Theycouldhaveraisedpricesandeasilysoldthoseunits,buttheystuckto
theoriginalpricing.DesignedbyarchitectGlennRescalvoofHandelArchitects,MillenniumTowerwasthesecond
luxurydevelopment
that
Millennium
Partners
built
in
San
Francisco.
In
2001,
Millennium
PartnersopenedtheFourSeasonsHotelandResidences,the100,000squarefootSports
Club/LA,andretailspacethatfrontsbothMarketStreetandYerbaBuenaLane.Other
MillenniumPartnersdevelopmentsinSanFranciscoincludetheentertainmentcenterMetreon
(inwhichMillenniumlatersolditsinterest)andtheretailalongYerbaBuenaLane.The
developeriscurrentlywrappingupentitlementsforanewtowerandMexicanMuseumat706
MissionSt.
7/28/2019 SF Business Times - Millennium Tower in San Francisco is a $750M Sellout
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Lynn,whohasrepresentedaboutadozenMillenniumbuyers,saidMillenniumPartners
executedanincrediblemarketingandsalesprocessthatresultedinthemsellingthroughvery
differentmarkets.Currently,justthreeMillenniumunitsareontheresalemarketonefor$4.5million,onefor
$5million,andonefor$6.2million.Allthreerepresentasignificantpremiumoverwhatthe
sellerpaidforthecondos,thoughtheyalsoinvestedmoneyoninteriordecoration.Thesituationwearefacingisthateverybodywantstobuyintothatbuildingandtheyare
kickingthemselvesthattheydidntwhentheyhadthechance,hesaid.Ivebeencontactedby
dozensofbuyersandagentstryingtogettheirclientsintothebuildingatthe$2millionor$3
millionrangeandthereisnothing.Thereisnoinventorybelow$4million.LynnsaidtheMillenniumTowerisourbuildingofthemoment.WhileMillenniumPartnerswill
buildanothertowerat706MissionSt.andTishmanSpeyerisconstructingthenextphaseofthe
Infinitytowersat201FolsomSt.,neitherwillbedeliveredforafewyears.Ithinkitsgoingto
lastalotlongerthanthemomentbecausetherearenoplanstobuildanotherbuildinglikeitfor
manyyears,
he
said.
Its
going
to
continue
to
set
awhole
new
economic
standard
for
luxury
unitsdowntown.A3,300squarefootunitoriginallypurchasedfor$5million,soldrecentlyfor$7.8millionafter
anextensiverenovation.Peoplewhosellnowareexpectingtocashoutwithmajorprofits,he
said.BaumertsaidtheMillenniumTowerconceptisnotasmuchaboutthephysicalstructureasthe
residentialexperience.MillenniumTowerimplementedLaVie,amonthlyeventsprogram
rangingfromfilmscreeningsintheClubLevelsprivatetheatertofiresidechatswithnotables
suchasresidentsMontanaandPerkinsaswellascelebritychefMichaelMinaandformerMayor
WillieBrown.
Resident
services
include
aprivate
concierge
and
exclusive
access
to
the
20,000
squarefootClubLevel,featuringaprivatediningroom(servicedbyMichaelMinasRN74),a
5,500squarefootfitnesscenteroperatedbySportsClubLA,anda75foot,indoor,
competitionlengthlappoolsetbeneathasoaringskylight.AlanMarkoftheMarkCo.saidtheMillenniumTowersamenitiesandreputationdrewpeople
totheTransbaydistrictwhootherwisewouldnothaveconsideredbuyingthere.Hehasfriends
whosoldhomesonBuenaVistaPark,RussianHillandPacificHeightstorelocatetowhatwas
onceagrittycornernexttoahulkingbusstation.Itbroughtalotofdeeppocketed,olderpeopletoawholenewpartofSoMapeoplewho
five
years
ago
might
not
have
thought
of
living
in
that
part
of
South
of
Market,
said
Mark.
Overthattime,MillenniumTowercameintoitsown.Peoplerecognizedit.Everyoneknew
peoplewhohadmovedintothebuilding.Andfinallyintheendtherewasnoinventoryofthat
qualityavailable.WhiletheMillenniumTowerwasconsideredapioneerwhenbuilt,todayitissmackinthe
middleofadistrictthatisseeing2.7millionsquarefeetofnewofficedevelopmentaswellasa
new$4billiontransitterminal.
7/28/2019 SF Business Times - Millennium Tower in San Francisco is a $750M Sellout
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Wealwaystalkedaboutthiswhattheneighborhoodwouldlooklikeandfeellike,said
Baumert.Nowyoucanseeit.Nowitsareality.YoustandonthecornerofMissionand
FremontandlooktoyourleftandseetheTransbayTerminal.TheTransbayTowerisweeks
awayfrombreakingground.Acrossthestreetat350MissionistheSalesforcebuilding.Ithas
reallyvalidatedourplantobuild.